Invoices, which are also used to log sales transactions, are not the same as cash memos. The fundamental difference between a cash memo and an invoice is that a cash memo only records cash sales, whereas an invoice only records credit sales. A cash memo is a useful tool for firms to manage their finances and sales.
For all-cash sales, the company saves a duplicate copy of the cash memo as documentation. Cash memos are kept in the seller’s cash book and are used to eliminate any doubt regarding cash transactions by writing them down. The buyer will provide the document to the accountant, who will create a payment voucher and record it. It will make it impossible for the customer to pay for the same invoice twice. So, order your custom-designed cash memo today!